Small Businesses encouraged to approach lenders now for Paycheck Protection Program

General Overview of the Paycheck Protection Program (PPP)

SBA lenders will start accepting Paycheck Protection Program (PPP) Loan applications today, April 3rd, for small businesses and sole proprietors. Independent contractors and self-employers can begin submitting applications on April 10th. This program provides potentially forgivable loans as long as the loan proceeds are used to cover payroll, mortgage interest, utility and rent costs over the 8-week period after the loan is made and employee and compensation levels are maintained. 

Eligible Businesses

  • A small business with fewer than 500 employees
  • A small business that otherwise meets the SBA’s size standard
  • A 501(c)(3) not-for-profit charitable organization with fewer than 500 employees
  • An individual who operates as a sole proprietor
  • An individual who operates as an independent contractor
  • An individual who is self-employed who regularly carries on any trade or business
  • A Tribal business concern that meets the SBA size standard
  • A 501(c) (19) Veterans Organization that meets the SBA size standard
  • If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply 

Ineligible Businesses

  • Businesses engaged in illegal activity under federal, state or local law. (Cannabis warning)
  • A household employer (e.g. if you have a nanny, staff, etc.)
  • Any previous defaults on a federal loan in last 7 years

Other important information

  • 1% interest rate
  • 2 years (2) term
  • $10,000,000 Maximum Loan Amount
  • Payments for the loan will be deferred for (six) months. (Interest continues to accrue.)
  • No collateral or personal guarantees required 
  • Forms needed by borrower:  SBA Form 2483 (PPP Application) and Payroll documentation
  • Lender forms:  SBA Form 2484 - Must be filed electronically
  • Available until June 30, 2020.